The latest deceptive mortgage advertisements target senior citizens, military veterans and active members of the armed forces, Consumer Financial Protection Bureau (CFPB) says.
CFPB announced today that that the aforementioned groups should be wary of mortgage-related ads that promise a low-fixed rate mortgage or low monthly payments without mentioning loan conditions or implying that the advertisement is endorsed by a government agency.
CFPB also found that some mortgage advertisements also stated that military members and military veterans could get special deals based on their military status or stating that senior citizens could receive a payment-free reverse mortgage.
The latter in particular raises red flags, because homeowners who qualify for a reverse mortgage typically have to continue to pay property taxes and insurance premiums.
In a joint effort, CFPB and Federal Trade Commission warned 20 companies that are affiliated with the mortgage advertisements that their claims could be in violation of the Mortgage Acts and Practices Advertising Rule. Mortgage advertisers that violate this rule could be subject to civil penalties.